The following case studies illustrate typical opportunities where THG could be of assistance in improving the total lifecycle management of your transactions.

CASE 1 – Poorly Articulated Deliverables

PROBLEM: John the buyer needs to acquire a new system to improve billing for his company. He solicited proposals from several top firms but never took the time to put together a scope of work. John is nervous about accepting a vendor’s proposal but is not sure what to do about it.

ANSWER: John is right to be worried. No matter how good a vendor might be proposals often do not quite match what the purchaser needs. Moreover, proposals often contain assumptions, clarifications or exceptions which need to be addressed. The better practice is for John, with appropriate assistance, to independently develop a detailed scope of work. This will allow John to put his company’s exact needs in his own words.

CASE 2 – Inadequate Skill Sets

PROBLEM: George the general manager has many good people from various backgrounds working for him in supply chain management. His people are intelligent and hard working but have not had much training in negotiating or managing contracts. Each one is doing his/her “own thing”. George believes that his people could be more productive and better risk managers if they had additional training.

ANSWER: George is correct. Continuous training is a vital part of how employees learn and grow into their positions. Employees may not always be aware of opportunities to improve how they negotiate and manage commercial transactions in an increasingly competitive environment. Training can assist employees in identifying opportunities for consistency and improvement while avoiding costly mistakes.

CASE 3 – Lack of Process

PROBLEM: Linda the Vice President is concerned that her company has no written process that defines how contracts are to be negotiated and managed. Her subordinates urge her not to be worried since “We and our people know what we are doing. Each of us has over twenty years experience. ” Should Linda be concerned?

ANSWER: Yes. The lack of a written process can come back to haunt even the most experienced company. Without a written process there is no guarantee of consistency and nothing to audit.

CASE 4 – Living with the Deal

PROBLEM: XYZ Corporation has just negotiated a very good deal with excellent terms and conditions. The transaction involves a long term project which will take several years to complete. Now that the contract has been signed the attitude at XYZ Corporation is that since the contract is so clear and complete very little contract management is required in order for the project to be successfully completed. Is such complacency justified?

ANSWER: No. No matter how good the contract is it will have to be actively managed from “cradle-to-grave” and it would be the gravest of mistakes to simply assume that the contract can be “filed and forgotten” until the project is over.